Trump Proposes 50-Year Mortgages to Make Homebuying Affordable

Washington, D.C. — President Donald Trump has floated the idea of a 50-year mortgage as a way to make homebuying more affordable. The proposal comes as housing affordability remains a pressing issue in the U.S.

Federal Housing Finance Agency Director Bill Pulte confirmed the initiative, stating, “Thanks to President Trump, we are indeed working on The 50-year Mortgage — a complete game changer.” The longer-term mortgage aims to lower monthly payments for homeowners, allowing them to manage their expenses more effectively.

Using the latest median home price of $415,200, as reported by the National Association of Realtors, and an interest rate of about 6.3% from Mortgage News Daily, monthly payments for a 30-year fixed loan would be $2,056 with a 20% down payment. However, extending the loan term to 50 years could reduce that payment to $1,823, saving homeowners $233 each month.

While the idea seems beneficial, critics warn that homeowners would build equity more slowly due to smaller principal payments. Additionally, the total interest paid over the life of the loan would be significantly higher—up to 40% more than a 30-year mortgage.

Financial analysts highlight that a 50-year mortgage does not qualify under the Dodd-Frank Act, which protects investors in case of defaults. However, the authority to amend this regulation exists, though it may take up to a year for Congress to approve any changes.

Matthew Graham, COO at Mortgage News Daily, expressed skepticism, stating, “There is not currently a secondary market for such loans, nor would a robust secondary market be cultivated any time soon.” He noted that higher rates would likely accompany 50-year mortgages, making them less appealing to buyers.

Joel Berner, a senior economist at Realtor.com, argues that while a 50-year mortgage may ease monthly payments, it would complicate the path to home equity and could lead to increased overall borrowing costs.

Supporters of the 50-year mortgage assert it could assist first-time buyers and those struggling with down payments. Pulte emphasized the aim of addressing affordability for young people, stating, “A 50-Year Mortgage is simply a potential weapon in a wide arsenal of solutions that we are developing right now.”

The ongoing debate about housing affordability illustrates the complexities of addressing the current market challenges, with home prices continuing to rise and demand remaining strong.